Dental Equipment Tax Deduction Question

Hello, I am starting a practice that will open in April. The equipment rep. has told me that I can deduct the equipment that I order as long as it is delivered before the end of the year. Recently my accountant told me that it won’t be deductable because it wouldn’t have been in use. I am more inclined to believe my accountant on this, but I wanted to get advice from others before I decide what to do. Is my accountant being too conservative?

The code says “placed in service” heck, you don’t have to pay a dime for it (could have borrowed 100% or payment due in 30 days as long as there’s a loan) as long as it’s “placed in service”. Code doesn’t make a distinction as to where it’s placed in service, old or new location, or even temporary location before it’s permanent one. Do you have a buddy’s office you can have it delivered to and see a couple of patients on the weekend with it before the end of the year?The more important question of course is do you NEED to take THAT deduction this year?

Just because you CAN take a deduction doesn’t mean you should, may be more valuable to use next year or thereafter.

This post first appeared on DentalTown.

Send your questions to Tim Lott, CPA, CVA at

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